STANES HIGH SCHOOL ASSOCIATION Vs. THE AUTHORIZED OFFICER, ALLAHABAD BANK, TIRUPUR BRANCH, NO. 342, PALLADAM ROAD, TIRUPUR 641 604 & ORS.

JUDGEMENT

(1.) Stanes High School Association, represented by its Principal, Coonoor, Nilgiris District, has filed the instant writ petition, for a Mandamus, directing the Authorized Officer, Allahabad Bank, Tirupur Branch, Tirupur 641 604 and the Authorized Officer, Andhra Bank, Coimbatore Branch, Coimbatore 641 001, respondents 1 and 2, to execute a sale deed, in their favour, by accepting the balance sale consideration of Rs.9 Crores, with appropriate interest, as per the orders, passed in I.A. No. 247 of 2017 in S.A. No. 54 of 2015, dated 15.04.2016, on the file of the Debts Recovery Tribunal, Coimbatore.

(2.) Facts leading to the writ petition are that Stanes Anglo Indian Higher Secondary School, Coonoor, Nilgiris District, is a minority educational institution registered, as an EVANGELICAL Christian School, under the Tamil Nadu Code of Regulation-Anglo Indian School Coeducation. M/s. Velan Hotels Ltd., Tiruppur, 3rd respondent herein, has borrowed loan from Allahabad Bank, Tirupur Branch, Tirupur and Andhra Bank, Coimbatore Branch, Coimbatore, respondents 1 and 2 and for nonpayment of the loan by the 3rd respondent, the property at Coonoor was brought to auction. Since there were no bidders, the petitioner entered into a private treaty under the SARFAESI Act, 2002, with the respondent banks, and as per the private treaty, the petitioner has advanced a sum of Rs.5 Crores (Rupees five crores only) with the Andhra Bank, Coimbatore Branch, 2nd respondent herein, and has to pay a balance sum of Rs.9 crores, to the said bank.

(3.) When M/s. Velan Hotels Ltd., Tiruppur, 3rd respondent herein, challenged the actions of the respondents' banks, by way of a SARFAESI Application in S.A. No. 54 of 2015, before the Debt Recovery Tribunal, Coimbatore. The petitioner has also filed an application in I.A. No. 447 of 2015, before the said Tribunal, seeking for a direction, against the Banks, to sell the properties, listed as Item No. 2, in the Schedule to the Sale Notice, dated 04.02.2015, by private treatment, under Rule 8(5)(d) of the Security Interest (Enforcement) Rules, 2002. By a common order, dated 18.03.2015, DRT, Coimbatore, accepted private treaty and permitted Andhra Bank to withdraw the advance amount, and to appropriate the same, towards the loan account of the 3rd respondent, on or before 31.03.2015 and further directed the parties to complete the sale, by private treaty, on or before 18.05.2015.